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ANNUAL ACCOUNTS FOR THE FINANCIAL YEAR 2005 OF THE 6TH, 7TH, 8TH AND 9TH EUROPEAN DEVELOPMENT FUNDS

(2006/C 265/01)

TABLE OF CONTENTS

1.   FINANCIAL STATEMENTS

1.1.   ACCOUNTING PRINCIPLES AND VALUATION RULES

1.1.1.   FINANCIAL REGULATIONS

The balance sheets and income and expenditure accounts were drawn up in accordance with the Financial Regulations applicable to the 6th, 7th, 8th and 9th European Development Funds (EDFs) (1).

The relevant documents must be presented to the Court of Auditors as provided for in Articles 66, 67 and 68 of the Financial Regulation applicable to the 6th EDF, Articles 69, 70 and 71 of the Financial Regulation applicable to the 7th EDF, Articles 66, 67 and 68 of the Financial Regulation applicable to the 8th EDF and Articles 102 and 103 of the Financial Regulation applicable to the 9th EDF. Article 102 (9th EDF) stipulates that, starting with the annual accounts for 2005, the Commission shall send the provisional accounts to the Court of Auditors by 31 March of the following year. The Court of Auditors shall in turn make its observations on the accounts known to the Commission by 15 June (Article 103). On the basis of these observations, the Commission approves the final accounts by 31 July and sends them to the European Parliament, the Council and the Court of Auditors. The accounts are then published in the Official Journal of the European Union by 31 October together with the statement of assurance given by the Court of Auditors in respect of the part of the EDF resources for which the Commission is responsible for financial management.

1.1.2.   ACCRUAL-BASED ACCOUNTS

In accordance with the provisions of Articles 99 and 135(3) of the 9th EDF Financial Regulation, full accrual-based accounts have to be prepared for the first time for the 2005 financial year.

To ensure the comparability of the information, the EDF accounting officer has restated the opening financial statements for the financial year 2005, on a full accrual accounting basis. The accounting information provided by the present IT accounting system (OLAS) has been adjusted, where necessary, in order  to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the authorising officer.

These financial statements have been drafted in conformity with a new set of accounting rules and methods for the EDF. These were drawn up on the basis of International Accounting Standards (IPSAS/IAS) and Generally Accepted Accounting Principles (GAAPs). The new rules and methods were subject to a peer review by the Accounting Standards Committee on which the Court of Auditors is represented as an observer.

The rules of valuation and accounting methods adopted by the accounting officer of the European Development Fund have been applied in respect of the part of the EDF resources for which the European Commission is responsible for financial management.

The annual accounts for 2005 are presented as follows:

1.1.3.   ACCOUNTING PRINCIPLES

The objectives of financial statements are to provide information about the financial position, performance and cash-flows of an entity that is useful to a wide range of users. For a public sector entity, the objectives are more specifically to provide information useful for decision making, and to demonstrate the accountability of the entity for the resources entrusted to it.

If they are to present a true and fair view, financial statements must not only supply relevant information to describe the nature and range of the activities, explain how it is financed and supply definitive information on its operations, but do so in a clear and comprehensible manner which allows comparisons between financial years. It is with these goals in mind that the present document has been drawn up.

The accounting system of the European Development Funds comprises general accounts and financial accounts. Both sets of accounts are kept in euro on the basis of the calendar year. The general accounts allow for the preparation of the financial statements as they show all charges and income for the financial year and are designed to establish the financial position in the form of a balance sheet at 31 December. The financial accounts give a detailed picture of the use of EDF resources. They are based on the cash accounting principle.

Article 98 of the 9th Financial Regulation sets out the accounting principles to be applied in drawing up the financial statements, as follows:

In accordance with the provisions of Articles 99 and 135(3) of the 9th EDF Financial Regulation, the financial statements for 2005 have been prepared on a different basis to that of 2004, i.e. on accrual accounting rather than cash accounting principles. Therefore adjustments were made to the balance sheet as of 31 December 2004 so as to arrive at the opening, accrual-compliant, balance sheet as at 1 January 2005 (for example, the inclusion of prefinancing amounts).

1.2.   CONSOLIDATION

Each EDF is governed by its own Financial Regulation which imposes the preparation of financial statements for each individual EDF. Accordingly, financial statements are prepared separately for each EDF in respect of the part that is managed by the European Commission. These financial statements are also presented in a consolidated way so as to provide a global view of the financial situation of the resources for which the European Commission is responsible.

Given the clear division of responsibilities set out in Article 1 of the 9th Financial Regulation, the financial statements of the Commission and the European Investment Bank — the entities entrusted with the management of EDF resources — have not been consolidated.

1.3.   CURRENCY AND BASIS FOR CONVERSION

Functional and reporting currency

The financial statements are presented in millions of euros, which is the European Communities' functional and reporting currency.

Transactions and balances

Foreign currency transactions are translated into euros using the exchange rates prevailing at the dates of the underlying transactions.

Year-end balances of monetary assets and liabilities denominated in foreign currencies are converted into euros on the basis of the exchange rates applying on 31 December 2005:

Euro exchange rate at 31 December 2005 — GBP 0,6853

1.4.   BALANCE SHEET ACCOUNTS

1.4.1.   PREFINANCING AMOUNTS

Prefinancing is a payment intended to provide the beneficiary with a cash advance, i.e. a float. It may be split into a number of payments over a period defined in the particular prefinancing agreement. The float or advance is repaid or used for the purpose for which it was provided during the period defined in the agreement. If the beneficiary does not incur sufficient eligible expenditure, he has the obligation to return, in whole or in part, the prefinancing advance to the European Development Fund. The amount of the prefinancing is reduced (wholly or partially) by the acceptance of eligible costs and amounts returned.

At year-end outstanding prefinancing amounts are valued at the original amount(s) paid to the beneficiary less: any amounts returned, eligible amounts cleared and the estimated eligible amounts not yet cleared at year-end.

Guarantees held to secure prefinanced amounts are treated as 'Contingent Assets' and as such they are not accounted for in the financial statements (IPSAS 19). Details are, however, provided in section 1.11 below for information purposes.

1.4.2.   DEBTORS

Receivables are carried at original requested amounts less any provision for bad debts. A provision for bad debts is established when there is objective evidence that the European Development Fund will not be able to collect the full amount due to it from third parties.

1.4.3.   CREDITORS

Liabilities are recorded at the eligible amount when a request for payment meets the predefined criteria.

The EDF has current liabilities for amounts already due to beneficiaries for which no invoices were received at the reporting date. The recognition criteria foresee that a charge is recognised by the EDF for the amount of the estimated payment due for the period, that is to say the portion of the incurred eligible expenses due to the beneficiaries at the reporting date. Material amounts are recognised as an accrued expense (accrued expenditure) on the basis of estimates (e.g. the degree of execution of contracts) provided by the authorising officer.

Payments due must be pre-recorded when cost claims or expense summaries are received and not at the time of their payment. In these cases, payments due are carried at the original value of the related cost claim or expense summary.

1.4.4.   CASH AND CASH EQUIVALENTS

Cash and cash equivalents are carried in the balance sheet at cost. They include accounts held with financial institutions in the ACP States and the OCTs, and with financial institutions in the Member States.

1.5.   ECONOMIC OUTTURN ACCOUNTS

1.5.1.   INCOME

In application of accrual-based accounting principles the only source of income for the funds is derived from interest payable on various cash balances held with commercial banks (see 1.10 below).

1.5.2.   EXPENDITURE

Expenditure should be recognised in the EDF financial statements as expenditure of the period that the events giving rise to a payment occurred, so long as:

Expenditure includes all payment orders executed by the banks up to 31 December 2005.

Expenditure incurred by Commission delegations is not finally entered in to the EDF accounts until it has been validated by both the authorising officer and the accounting officer. Any expenditure which did not meet this double criterion at the year end is shown under the heading 'transactions to be finalised'.

1.6.   RECORDING OF OPERATIONS

The deadline for the commitment of the funds under the 9th EDF has been set at 31 December 2007 in line with the 'sunset clause' adopted by Council Decision 2005/446/CE of 30 May 2005 (2).

Entitlements due from the Member States (mainly contributions which have not yet been called or interest due on the late payment of called funds) must be entered in the accounts. These items are set out in the balance sheets for the various EDFs.

In accordance with the principles of accrual-based accounting, the financial statements show the financial charges and income for the financial year regardless of the date of payment or collection.

1.7.   USE OF ESTIMATES

In accordance with generally accepted accounting principles, the financial statements necessarily include amounts based on estimates and assumptions by management. Significant estimates include, but are not limited to, provisions for future charges, financial risk on accounts receivable, accrued income and charges. Actual results could differ from those estimates. Changes in estimates are reflected in the period in which they become known.

1.8.   IMPACT OF THE TRANSITION TO ACCRUAL ACCOUNTING

1.9.   FINANCIAL STATEMENTS

Consolidated balance sheet 2005 for the 6th, 7th, 8th and 9th EDF

6th EDF balance sheet 2005

7th EDF balance sheet 2005

8th EDF balance sheet 2005

9th EDF balance sheet 2005

CONSOLIDATED ECONOMIC OUTTURN ACCOUNT 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

6TH EDF ECONOMIC OUTTURN ACCOUNT 2005

7TH EDF ECONOMIC OUTTURN ACCOUNT 2005

8TH EDF ECONOMIC OUTTURN ACCOUNT 2005

9TH EDF ECONOMIC OUTTURN ACCOUNT 2005

CASH FLOW STATEMENT 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

CONSOLIDATED STATEMENT IN CHANGES IN CAPITAL 2005 FOR THE 6TH, 7TH, 8TH AND 9TH EDF

6TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

7TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

8TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

9TH EDF STATEMENT IN CHANGES IN CAPITAL 2005

1.10.   NOTES TO THE ACCOUNTS

(1)   MEMBER STATE (EUR-15) CONTRIBUTIONS

Details of contributions called up and received during the year 2005 are shown in Table 1. The EIB contribution is the sum of the Special Congo Contribution (see note 10) and the EUR 120 million transfer referred to in note 12.

Table 1

Contributions called up and received for the year ended 31 December 2004 and 2005 for the 8th and 9th EDF

(2)   DEBTORS

The detail of this heading is shown in Table 2:

Table 2

In accordance with the provisions of the Cotonou Agreement, interest income is presented in the balance sheet of the 9th EDF. The sole exception is the interest earned in Stabex security accounts which is presented in the 8th EDF as this aid instrument does not feature in the 9th EDF.

(2.1)   Interest on late contributions

In accordance with Article 40(4) of the 9th EDF Financial Regulation, interest is charged to the Member States in the event of late payment of the called-up contributions. Details of interests charged and subsequently paid by the Member States are given in Table 2.1.

Table 2.1

Interest for late payment of EDF contributions for the year ended 31.12.2005

(2.2)   Interest on late contributions Stabex

All Stabex contributions were received prior to the beginning of the 2005 financial year. The amount shown for interest due represents the outstanding balance carried over and corresponds to interest due from France.

(2.3)   Interest receivable European banks and Stabex main account

This amount represents interest earned on the Stabex security accounts during the financial year 2005 but only credited to the bank account in 2006. This interest is the property of the relevant beneficiary countries.

(2.4)   Interest receivable Stabex security accounts

This amount represents interest earned on the Stabex security accounts during the financial year 2005 but only credited to the bank account in 2006.

(2.5)   Debit notes/recovery orders to be issued

In order to apply accrual accounting principles, the authorising officer has calculated the amount of advances to be recovered for which recovery orders have yet to be issued.

Details are shown Table 2.2:

Table 2.2

(2.6)   Recoveries

The movements for the year on issued recovery orders are shown in Table 2.3:

Table 2.3

The closing balance for recovery orders (EUR 18,52 million) represents the value of recovery orders issued but unpaid at the year end. During 2005 recovery order files closed amounted to EUR 60,56 million. Of this total, an amount of EUR 3,49 million was written off by the authorising officer during the year and an amount of EUR 8,57 million was recovered by the accounting officer by way of offsetting, in accordance with the provisions of Article 46 of the 9th EDF Financial Regulation.

(3)   PROVISION FOR DOUBTFUL DEBTS

In compliance with IPSAS 19, the accounting officer has established a provision for doubtful debts on two variables:

Potential exchange rate losses (on recovery orders not issued in euro) are not taken into account for this calculation, as these are not considered to be material.

The detail of this provision is shown is Table 3:

Table 3

(4)   NET PREFINANCING

Until 2004 financial year, payments on account and advances were treated as expenditure on projects in the annual accounts of the EDF (except for advances of study awards and to bodies such as GTZ, AGRER and AEC). Following the principles of accrual accounting, advance payments are now classified as assets. The figures for open prefinancing have been provided by the authorising officer (see Table 4.1) and have been revised downwards by the open recoveries concerning advances and by the calculated figures for invoices to be sent, as shown in Table 4.

Table 4

(4.1)   Prefinancing

Many contracts provide for payments of advances before the commencement of works, deliveries of supplies or the provision of services. Sometimes the payment schedules of contracts foresee payments on account on the basis of progress reports. Advances, which normally are paid in the currency of the country or territory where the project is executed, are kept separate in the accounts of the authorising officer to allow them to be cleared.

The table below summarises outstanding advances (except for Structural Adjustment programmes and direct budgetary support programme) at the end of the year. Conversion into euro is made using the official exchange rate of 31 December 2005

Table 4.1

(5)   OTHER CURRENT ASSETS

This amount comprises all payments/receipts awaiting final allocation to the appropriate projects as shown in Table 5.

Table 5

(6)   DEFERRED CHARGES

This heading represents the total funds available for the relevant ACP State. The amount shown in 7th and 8th EDF concerns deferred Stabex expenditure, whilst the amount shown in 9th EDF concerns the available special Democratic Republic of the Congo Fund. The total amounts due to the states concerned (including accrued interest for 2005 — see note 2 and Table 2 above) are shown in Table 6.

Table 6

The total of the deferred Stabex expenditure represents the total of Stabex funds available and which will be transferred to the relevant beneficiary ACP State at a future date. This total amount concerns the 8th EDF, with the exception of EUR 8,63 million allocated to Burundi and EUR 53,83 million allocated to Sudan which fall under the 7th EDF.

In addition to the funds shown above, there are other Stabex funds held by beneficiary ACP States. Once the Commission and the beneficiary (ACP) State have reached agreement on how the Stabex funds are to be utilised, a transfer convention is signed by both parties. In accordance with the provisions of Article 211 of the Lomé 4 Agreement (as revised), the funds are transferred into an interest-bearing double signature account (Commission official and Beneficiary State) opened in the name of the ACP State. The Commission official retains the power of signature over the account in order to ensure that the funds are disbursed as intended. The funds are the property of the ACP State and as such are not recorded as assets in the EDF annual accounts. Details on these accounts are however provided in the annual EDF financial management report.

(7)   LIAISON ACCOUNTS

For reasons of efficiency, there is a single treasury for all the EDFs being implemented; this leads to operations between the various EDFs, which are balanced out in the liaison accounts between the various balance sheets.

Balances on the liaison accounts at 31 December 2005 are detailed in Table 7.

Table 7

(8)   SECURITY CASH ACCOUNTS

This heading shows the cash balance remaining on the security Stabex accounts opened in the name of the various beneficiary States and the special D R Congo fund account. See also note 6.

(9)   CASH AND CASH EQUIVALENTS

In accordance with Article 129 of the 9th EDF Financial Regulation, the treasury is presented in the balance sheet of the 9th EDF. Table 8 shows the breakdown of total cash at bank:

Table 8

(9.1)   Treasury accounts

Accounts held with the central banks of the Member States into which EDF contributions are paid. The accounting officer makes transfers from these accounts to the EUR paying agents.

(9.2)   ACP paying agents

Amounts held in bank accounts held within ACP States used for making payments in local currency within the beneficiary state. The accounts are generally kept in euros, but may also be kept in a currency of a Community Member State.

(9.3)   Euro paying agents

These accounts are held with commercial banks established in the Member States (EUR-15) and with the EIB. The accounts are kept in euros and are used for payments to beneficiaries within the Union and elsewhere. Payments are generally made in euros, but may also be made in other currencies. These funds are also used to replenish ACP paying agent accounts and the liaison account with General Budget.

(9.4)   Stabex current account

This amount represents the cash balance remaining on the Stabex main account. EUR 12 165 852 will be made available for Togo by way of transfer to a security account, once instructions have been received from the authorising officer.

The interest earned in this account is periodically transferred to the EDF main account to be used in accordance with Articles 1.3 and 9 of the Internal Agreement.

(9.5)   Funds en route

Some replenishment sent before the year end were only registered by the beneficiary bank in 2006.

(10)   SUBSCRIBED FUNDS — FUND CAPITAL (A)

This represents the total amount receivable from the Member States for the relevant EDF fund as laid down in each of the internal agreements between the Member States and the beneficiary African, Caribbean and Pacific (ACP) States and the Overseas Countries and Territories (OCT).

The initial allocation for the (current) 9th EDF, which originally totalled EUR 10 555,15 million, has since been increased by an amount of EUR 105 million in 2004, which was released by the EIB in accordance with the provisions of Council Decision 2003/583/EC (3). This additional allocation is in favour of actions to be undertaken in the Democratic Republic of the Congo.

Article 2(2) of the Internal Agreement for the 9th EDF set a EUR 1 000 million reserve. EUR 250 million were released in 2004 following the adoption of Council Decision 2004/289/CE in order to establish a water facility (4). A further EUR 627 million were released during 2005 following Decisions No 6/2005 (5) and 7/2005 (6) of the ACP-EC Council of Ministers of 22 November 2005.

(11)   UNCALLED FUNDS (B)

Initial allocation not yet receivable from Member States (EU-15).

(12)   CALLED FUNDS CAPITAL (C)

This represents the amount of the initial allocations which has been called up for transfer to the treasury accounts by the Member States in accordance with the procedure in Article 8 of the Financial Regulation, whereby each year the Commission must establish and communicate to the Council a statement of the payments to be made in the following year and a schedule of calls for contributions. The Commission must justify the amount requested on the basis of its capacity to deliver the proposed level of resources effectively.

Contributions are still being called up from the 8th EDF, with the sole exception of the EUR 105 million in favour of the Democratic Republic of the Congo called in from the 9th Fund.

In an extraordinary meeting of the ACP Working Group at Council on 26 October 2004, Member Sates unanimously decided that the EIB should transfer an amount of EUR 100 million from its EDF treasury to the Commission's EDF treasury, with a consequent reduction of the overall amount of the contributions from Member States. Following the same principle, in 2005 Member States decided on a second transfer of EUR 20 million from the EIB treasury to the Commission.

Details of amounts called up and received during the year are shown in Table 1 (see note 1).

(13)   CUMULATIVE RESERVES (D)

Up to the 2004 financial year the economic outturn of each fund was not included in the balance sheet. This category regroups the effects of the change in accounting policy.

The cumulative reserves for 2004 include the cumulative expenditure and interest (see Table 9.1) until 31 December 2004, as shown in Table 9.

Table 9

Table 9.1

(13.1)   Capitalised interest, Stabex interest, EIB interest, European banks interest

The interest earned on accounts with European paying agents (including the main Stabex account) can be used to finance projects in accordance with Articles 1(3) and 9 of the Internal Agreement.

This heading represents the amount of interest on deposited funds which can be committed for the financing of such projects. This interest results in an effective increase in the Funds' overall appropriations.

(13.2)   Interest on late payment

This is interest due on the late payment of contributions by Member States or the late reimbursement of recovery orders. Such funds can be used for financing projects. This interest results in an effective increase in the Funds' overall appropriations.

(13.3)   Interest income, Stabex security accounts and the special Democratic Republic of the Congo account

This represents the accumulated income generated by the Stabex security accounts and the special Democratic Republic of the Congo account. Whilst such income appears to increase the total of the Fund it should be borne in mind that any income generated by these accounts is earmarked for the specific purpose and beneficiary State.

(14)   OTHER RESERVES (e)

This heading includes the replenishment of Stabex resources under 6th EDF, and the resources transferred from other EDFs.

The replenishment of Stabex resources (EUR 185,10 million) comprises direct contributions by the ACP States (replenishment of resources) and the amounts by which transfer entitlements have been reduced at the request of the ACP States. The obligation to replenish Stabex resources was abolished by the ACP-EDF Council Decision of 19 November 1991.

Since the entry into force of the Cotonou Agreement, all the unspent funds in previous EDFs are transferred to the 9th EDF after decommitment. The resources transferred from other EDFs increase the appropriation of the receiving fund and reduce that of the Fund of origin. The total balance is shown in Table 10 below.

Table 10

(15)   CREDITORS

The total creditor balance is detailed in Table 11:

Table 11

(15.1)   Contributions received in advance

Certain contributions were paid in advance by Member States, as shown in Table 11.1:

Table 11.1

(15.2)   Liaison account with General Budget

As from the beginning of financial year 2005, payments to beneficiaries within the Union in euros or in other currencies are executed through SWIFT by the General Budget of the European Commission. For this purpose, a current account has been opened.

(15.3)   Provisions for bank charges

This amount is made up of transactions relating to bank charges for the year ended 31 December 2005, which were debited to the relevant bank accounts after the year end.

(15.4)   Outstanding Stabex payments

This balance represents the amounts due to beneficiary ACP States in respect of the Stabex aid instrument. The total represents the balances held on the Stabex security accounts.

(15.5)   Outstanding special Democratic Republic of the Congo Funds

This balance represents the amounts available for Congo in accordance with the provisions of Council Decision 2003/583/EC.

(15.6)   Non-finalised payments

Payments authorised before 31 December 2005 but executed by the bank in 2006. The amounts registered in the accounts of the authorising officer are shown in Table 11.2.

Table 11.2

(15.7)   Eligibility to be confirmed

Invoices which arrived before the end of the financial year 2005 but which had still not been analysed at 31 December 2005. The amounts registered in the accounts of the authorising officer are shown in Table 11.3.

Table 11.3

(15.8)   Accrued expenditure

These figures reflect expenditure which has been incurred but has not yet been invoiced (e.g. work in progress on capital projects). The amounts calculated by the authorising officer are shown in Table 13.4.

Table 11.4

(16)   ADMINISTRATIVE EXPENDITURE

This heading includes administrative and financial expenditure financed by bank interest. Under the 8th and 9th EDF it includes expenditure related to the devolution process in application of provisions of Articles 1(3), 4 and 9 of the Internal Agreement. The breakdown of this expenditure is shown in Table 12.

Table 12

Administrative and financial costs

(17)   TOTAL EXPENDITURE

These amounts represent total payments for the fund(s) in question during the 2005 financial year on a cash accounting basis, including advance payments and recoveries. Cumulative figures are shown in the report on financial implementation prepared by the authorising officer.

(18)   ACCRUAL ADJUSTMENTS

Following the change in accounting policy (i.e. a switch from cash to accrual-based accounting), total expenditure has been restated to comply with the international accounting standard IPSAS 3. The accounting information provided by the EDF accounting system has been adapted, where necessary, in order to provide figures which comply with accrual accounting principles. Additional information in respect of income and expenditure items has also been provided by the authorising officer. The breakdown is shown in Tables 13.1 (financial year 2004) and 13.2 (financial year 2005).

Table 13.1

Table 13.2

(19)   TOTAL EXPENDITURE ON AN ACCRUAL BASIS

Project expenditure by fund for 2005 has been restated in accordance with the relevant international accounting standards. The expenditure for each policy area will be presented on an accrual basis as and from the 2008 financial year, once the accounts have been migrated to the new IT (ABAC) system.

(20)   FINANCIAL INCOME

Interest income is presented in the balance sheet of the 9th EDF. The sole exception is Stabex security interest which is presented in 8th EDF due to absence of this aid instrument in the 9th EDF.

Financial income for the year is shown in Table 14 below:

Table 14

(21)   FINANCIAL COSTS

Up to the 2004 financial year this category of expenditure was presented as a part of administrative costs. In the interests of transparency these costs are now presented under a separate heading. See details in Table 12.

1.11.   OFF BALANCE ITEMS

Guarantees are held to secure prefinancing and released when the final claim under a project is paid. In accordance with the 'Prudence' concept and in compliance with the provisions of IPSAS 19, contingent assets are not accounted for in the financial statements. They are disclosed here by way of note in the interests of transparency.

The total amount registered by the authorising officer under this heading is shown in Tables 15 and 16.

Table 15

Table 16

2.   REPORT ON FINANCIAL IMPLEMENTATION

INTRODUCTORY NOTE

Previous EDFs

Decision No 1/2000 of the ACP-EC Council of 27 July 2000 regarding transitional measures (7) provides for some of the unallocated resources from previous EDFs to be used for programmes consistent with the relevant provisions of the Cotonou Agreement and put into early application under transitional measures.

Commission Decision C(2001) 717, which fixes the allocations for the indicative programmes of the ACP countries under the ACP-EC Partnership Agreement, stipulates that the unallocated resources from previous EDFs up to a maximum of EUR 1,2 billion are to be used for implementation in accordance with the rules and procedures of the relevant EDFs pending the entry into force of the Financial Protocol to the 9th EDF.

Commission Decision C(2001) 1578 fixed the allocations for regional programmes and intra-ACP cooperation under the Financial Protocol to the ACP-EC Partnership Agreement.

Commission Decision C(2002) 2567 increased the envelope intended for intra-ACP cooperation by EUR 60 million, from the general reserves of the 6th and 7th EDFs, and also provided for the use of these additional funds pending the entry into force of the Financial Protocol to the 9th EDF, in accordance with the rules and procedures applicable to the original EDFs.

Lastly, Decision No 3/2002 of the ACP-EC Council of Ministers of 23 December 2002 (8) took an amount of EUR 25 million from the unallocated resources of the 8th EDF (general reserve) and allocated it to regional cooperation under the ACP-EC Partnership Agreement.

As last year, to ensure transparency in the presentation of the accounts the various tables below set out separately for each of the 6th, 7th and 8th EDFs the part used for Lomé Convention programming and the part used for programming under the Cotonou Agreement. Entry in the accounts and the presentation of accounts in connection with the Cotonou Agreement is based on Article 3(2) of Annex IV to the ACP-EC Partnership Agreement, as regards countries. That Article gives the ACP countries an allocation A to cover macroeconomic support and support for programmes and projects and an allocation B to cover unforeseen needs such as emergency assistance, debt relief initiatives and support to offset the adverse effects of instability in export earnings (9). For the regions, the accounts are set out according to the regional programming as referred to in Chapter 2 of the ACP-EC Partnership Agreement (i.e. regional indicative programmes and intra-ACP cooperation).

9th EDF

The ACP-EC Partnership Agreement signed on 23 June 2000 in Cotonou by the Member States of the European Community and the States of Africa, the Caribbean and the Pacific (ACP States) entered into force on 1 April 2003.

The EU Council Decision of 27 November 2001 (2001/822/EC) on the association of the overseas countries and territories (OCT) with the European Community entered into force on 2 December 2001.

The Cotonou Agreement was concluded for a twenty-year period with a five-year review clause and a Financial Protocol for each five-year period. The EU Council Decision on the association of the OCT with the European Community is applicable for 10 years.

The first five years are, therefore, financed under the 9th EDF. The 9th EDF was set at EUR 13 800 million, including EUR 13 500 million allocated to the ACP States in accordance with the first Financial Protocol included in the Cotonou Agreement, EUR 175 million allocated to the OCT (provided for by the EU Council Decision on the association of the OCT) and EUR 125 million reserved for the European Commission to cover expenses in connection with implementing the 9th EDF resources (provided for in the internal agreement for the 9th EDF). The total amount of the first Financial Protocol, supplemented by the balances transferred from the previous EDFs, covers the period 2000 to 2007 (Annex I(5) to the Cotonou Agreement).

Of the total budget of EUR 13 500 million for the ACP States, EUR 1 000 million was released in 2004 and 2005 after examination by the EU Council, on the basis of a proposal from the European Commission:

The breakdown of 9th EDF allocations for ACP States, including the ‘conditional billion’ and allocations managed directly by the European Investment Bank (EIB), is as follows:

The long-term development budget for ACP States has two components:

The A allocation for macroeconomic support, sectoral policies, and programmes and projects supporting Community aid: this corresponds to the allocation for the NIPs and structural adjustment in previous EDFs.

The B allocation, intended to cover unforeseen needs such as emergency aid, contributions to debt reduction initiatives and support to offset adverse fluctuations in export earnings, generally corresponds to the Stabex, Sysmin and emergency aid allocations in previous EDFs.

The breakdown of 9th EDF allocations for the OCT, including those managed directly by the European Investment Bank (EIB), is as follows:

The unallocated C reserve for OCTs is maintained to finance humanitarian aid, emergencies, refugee assistance and fluctuations in export earnings, and corresponds to the B allocation for the ACP countries.

Also, under Commission Decision C(2003) 1904, any balances remaining from previous EDFs on the date of entry into force of the Cotonou Agreement and any amounts decommitted at a later date from ongoing projects under those Funds were transferred to the 9th EDF. Any resource thus transferred to the 9th EDF after previously having been allocated to the indicative programme of an ACP State or region has been allocated to that State or region. On the other hand, the unallocated resources have been transferred to reserves which will be subject to new programming under the 9th EDF.

All figures presented in the Report on Financial Implementation are on a cash basis.

The tables annexed giving the amounts decided, contracted and paid refer to net data. Only Table 2.7. refers separately to amounts committed and decommitted and amounts paid and recovered.

Owing to the technical limitations of the current accounting system, partial recoveries are recorded by the program as being fully recovered. An amount of EUR 0,46 million (EUR 0,09 million for 2005) is in fact shown as recovered in the income and expenditure accounts. The amount actually recovered is indicated in the financial statements in part one of this document. This discrepancy will no longer appear as from the 2007 financial year when the new ABAC accounting system comes on stream.

2.1.   APPROPRIATIONS AT 31 DECEMBER 2005

Table 1.1

6th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

Table 1.2

6th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

Table 1.3

7th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

Table 1.4

7th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

Table 1.5

8th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

Table 1.6

8th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR

Table 1.7

9th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF FUND BY INSTRUMENT

Table 1.8

9th EDF

Situation of appropriations (EUR): 31 December 2005

ANALYSIS OF MOVEMENTS DURING THE YEAR 

Table 1.9

6th-7th-8th-9th EDF

Increases, reductions and transfer of resources during 2005

Table 1.10

2.2.   CONSOLIDATED ACCOUNTS

EDF consolidated accounts at 31 December 2005:

Table 2.1

PROGRESS REPORT

Table 2.2

CLASS OF AID

Table 2.3

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 6th EDF

Table 2.4

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 7th EDF

Table 2.5

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 8th EDF

Table 2.6

ANALYSIS BY AID INSTRUMENT

ACP + OCT — 9th EDF

Table 2.7

ANNUAL 2005 GROSS FIGURES BY INSTRUMENT FOR DECISIONS AND PAYMENTS

Annual Decision 2005

Annual payments 2005

2.3.   SITUATION BY COUNTRY AND BY INSTRUMENT

2.3.1.   6th EDF

Notes to the management accounts:

2.3.2.   7th EDF

Notes to the management accounts:

2.3.3.   8th EDF

Notes to the management accounts:

2.3.4.   9th EDF

Notes to the management accounts:

2.3.5.   All EDF

The relative tables are attached in appendix.

2.4.   OTHER MANAGEMENT INFORMATION

Table 4.1.1

SITUATION CONCERNING ‘DORMANT’ COMMITMENTS

The tables below show, for each of the allocations of the sixth, seventh and eighth EDFs, the commitments for which implementation is slow. A commitment is considered ‘dormant’ or ‘slow’ if, in the course of the 24 months preceding the end of the financial year 2005:

Pre-2000 dormant projects (old RAL) are not included in the table.

Slow commitments are in three categories: Projects which must remain open, projects to be closed, projects whose staus is not known.

The book values shown are the sum of the amounts committed but not paid, commonly known as the ‘RAL’.

For projects with a book value of over EUR 1 million which must remain open even though apparently inactive or for which no evidence of their status has been obtained, certain comments appear in the notes below

Table 4.1.2

Breakdown of sleeping commitments (TRO): Projects with RALs of over EUR 1 million

1.   Stabex projects

2.   Slow starters

These are primarily projects for which contracts have not yet been awarded. This may be because the tender procedure had to be cancelled to comply with the rules of sound financial management (non-compliant bids, procedural failures by the beneficiary administration) or the start has been delayed (e.g. amendments had to be made to the financing agreement). In the case of budgetary support/structural adjustment projects, audits on previous instalments and/or those needed for payment of instalments have not been completed yet.

3.   Ongoing EIB projects which did not entail payments during the reference period or for which the contract has not yet been signed

Table 4.2.1

UNFINALISED PAYING AGENTS' CASH-FLOWS

Revenue and expenditure on paying agents' accounts still to be entered in the authorizing officer's accounts at the end of 2005 (shown by beneficiary country).

At the date of publication of the financial statements, the vast majority of the revenues and expenditures in question have been recorded in the accounts of the projects concerned.

Table 4.2.2

ADVANCES FOR STUDY AWARDS AND TECHNICAL ASSISTANCE CONTRACTS AT 31.12.2005

Advances are paid to Commission delegations and agencies in Member States administering study awards and technical assistance contracts on behalf of the Commission. These advances are cleared regularly, when expense reports are received, and replenished based on the volume of study awards and technical assistance contracts handled.

The amount of outstanding advances at the end of 2005 and 2004 respectively is shown below.

Table 4.2.3

ITALIAN COFINANCING

In 1985 the European Commission signed an agreement with the Italian Government to cofinance development projects that would be managed by the Commission.

The agreement was repeatedly extended to 31 December 2004 by exchanges of letters between the Italian Government and the Member of the Commission responsible for Development.

The Commission then took a decision to implement the framework cofinancing agreement under written procedure E/1588/2004. The purpose of this decision was to adopt the regulatory budgetary framework for commitments made under the Agreement. With this in mind, the Commission decision states that the Commission will implement the cofinancing arrangements in accordance with the rules laid down in the EDF Financial Regulation and that the same EDF authorising officers by delegation or subdelegation are empowered by this decision to manage Italy's contribution. The authorising officer by delegation is also empowered to determine the appropriate final deadline for implementation in accordance with the applicable rules.

The treasury movements of Italian funds for projects managed by the Commission in ACP countries in 2005 are as follows:

A total of 52 projects have been cofinanced by the Italian Government in the ACP States since the signing of the above agreement, two of which were still running in 2005.

In 2005 a new contract was signed along with eight supplementary agreements to extend the date and amend the budget breakdown, but without the need for an additional financial commitment.

3.   FINANCIAL INFORMATION EIB

3.1   INVESTMENT FACILITY INCOME STATEMENT

3.2.   INVESTMENT FACILITY BALANCE SHEET

3.3.   INVESTMENT FACILITY CASH-FLOW STATEMENT

3.4.   INVESTMENT FACILITY STATEMENT OF CHANGES IN EQUITY

3.5.   NOTES TO THE FINANCIAL STATEMENTS

3.5.1.   GENERAL INFORMATION

The Investment Facility (the Facility) has been established within the framework of the Cotonou Agreement (the Agreement) on cooperation and development assistance negotiated between the African, Caribbean and Pacific Group of States (the ACP States) and the European Union and its Member States on 23 June 2000 and revised on 25 June 2005.

The Facility is managed by the European Investment Bank (the EIB or the Bank). Under the terms of the Agreement up to EUR 2 200 million for ACP and EUR 20 million for OCT (as agreed by the Council Decision of 27 November 2001 on the association of the Overseas Countries and Territories with the European Community) may be allocated to finance the Facility. Within the framework of the Agreement, the EIB also manages loans granted from its own resources. All other financial resources and instruments under the Agreement are administered by the European Commission.

3.5.2.   SIGNIFICANT ACCOUNTING POLICIES

In 2005, the Facility adopted the International Financial Reporting Standards for the preparation of its financial statements and this adoption was done according to IFRS 1 — First Time Adoption of IFRS — using 1 Jannary 2004 as the transition date.

The accounting policies applied are in conformity with the IFRS and with the overall principles of the Directives 86/635/EEC of the Council of the European Communities of 8 December 1986 on the annual accounts and consolidated accounts of banks and other financial institutions, as amended by Directive 2001/65/EC of 27 September 2001 and by Directive 2003/51/EC of 18 June 2003 on the annual and consolidated accounts of certain types of companies, banks and other financial institutions and insurance undertakings (the Directives).

The preparation of financial statements in conformity with IFRS requires the use of certain critical accounting estimates. It also requires management to exercise its judgment in the process of applying the Facility's accounting policies. The area involving a higher degree of judgment or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed.

The balance sheet represents assets and liabilities in decreasing order of liquidity and does not distinguish between current and non-current items.

Foreign currency translation

The Facility uses the euro for presenting its financial statements, and it is also the functional currency.

For the presentation of the financial statements, assets and liabilities denominated in currencies other than euro are translated into euro at the spot rates of exchange prevailing on the balance sheet date.

The profit and loss accounts are translated monthly into euro based on the exchange rates prevailing at the end of each month.

Exchange differences arising on translation are recorded as a currency gain or loss in the income statement.

Cash and cash equivalents

The Facility defines cash equivalents as current accounts or short-term deposits with original maturities of three months or less.

Financial assets other than derivatives

Financial assets are accounted for using the settlement date basis.

Impairment of financial assets

Impairments are made for loans outstanding at the end of the financial year, when presenting objective evidence of risks of non-recovery of all or part of their amounts according to the original contractual terms or the equivalent value. Specific provisions for impairment are then recognised in the income statement. Impairment is then defined as the difference between the carrying value of the loans and the net present value of expected future cash flows, determined using the instrument's original effective interest rate where applicable. On the basis that the Bank conducts credit risk assessment on a loan-by-loan basis, there is no need for collective impairment provision.

The Facility determines that available-for-sale equity investments are impaired when there has been a significant or prolonged decline in the fair value below cost. This determination of whether a decline is significant or prolonged is based on a judgmental appreciation. If a specific provision for impairment is made for an equity investment, any change in fair value that had previously been recognized in reserves is taken to the income statement.

The European Investment Bank's Risk Management reviews financial assets for impairment at least once a year. Resulting adjustments include the unwinding of the discount in the income statement over the life of the asset, and any adjustments required in respect of a reassessment of the initial impairment.

Derivative financial instruments

In the normal course of its activity, the Facility may enter into swap contracts with a view to hedge specific lending operations, denominated in actively traded currencies other than the euro, in order to offset any gain or loss caused by foreign exchange rate fluctuations.

However, the Facility has not entered into any hedge accounting transactions under IFRS rules as at 31 December 2005 and 2004. Therefore, all derivatives are measured at fair value through the income statement. Fair values are derived primarily from discounted cash-flow models, option-pricing models and from third party quotes. Derivatives are carried as assets when their fair value is positive and as liabilities when their fair value is negative.

Contributions

Contributions from Member States are recognised as receivable in the balance sheet on the date of the Council Decision fixing the financial contribution to be paid by the Member States to the Facility.

Interest subsidies

As part of its activity, the Facility manages interest subsidies on behalf of the Member States.

The part of the Member States contributions allocated to the payment of interest subsidies is not accounted for in the Facility's equity but is classified as an amount owed to third parties.

Interest income on treasury

Under the terms of the Facility and according to the Financial Regulation applicable to the 9th European Development Fund, the funds received by the EIB on behalf of the Facility are recorded in an account in the Commission's name. Interest on these deposits, placed by the Facility with the EIB, is not accounted for by the Facility as it is payable directly to the European Commission.

Reflows, being repayment of principal, interest or commissions stemming from financial operations, and interest calculated on these reflows are accounted for within the Facility.

Interest, fees, commissions and dividends

Interest is recorded on an accruals basis using the effective yield method.

Fees received in respect of services provided over a period of time are recognised as income as the services are provided. Commitment fees are deferred and recognised in income using the effective interest method over the period from disbursement to repayment of the related loan.

Dividends relating to equity investments are recognised when received.

Taxation

The Protocol on the Privileges and Immunities of the European Union, appended to the Treaty of 29 October 2004 establishing a Constitution for Europe, stipulates that the assets, revenues and other property of the Institutions of the Union are exempt from all direct taxes.

Effect of changes in accounting policies

Previous financial statements were produced in accordance with the general principles of Directive 86/635/EEC of the Council of the European Communities of 8 December 1986 (as amended by Directive 2001/65/EC of 27 September 2001) on the annual accounts and consolidated accounts of banks and other financial institutions (the Directive).

Where necessary, certain prior-year figures have been reclassified to conform with changes to the current year's presentation for comparative purposes. The transition to IFRS has not affected the net income and equity for the year 2004.

3.5.3.   RISK MANAGEMENT

Credit risk

This section presents financial information about the investments made by the Facility.

As at 31 December 2005, the Facility's only exposures were with private borrowers. The table hereafter analyses the Facility exposure disbursed by type of investment instrument used.

The table below analyses the Facility exposure disbursed by sector.

Interest rate risk

The table below summarises the Facility's exposure to interest rate risk through its investments.

Liquidity risk

The table below sets out the Facility's assets and liabilities by relevant maturity groupings based on the remaining period to the contractual maturity date.

Foreign exchange risk

The table below analyses the Facility assets and liabilities by relevant currency groupings.

In accordance with the Cotonou Agreement, the Facility may enter in financial operations in currencies other than euro and bear the foreign exchange risk. However, when an adequate swap market exists, the Facility may enter into a swap agreement to cover itself against any foreign exchange fluctuation.

3.5.4.   SEGMENT INFORMATION

In accordance with IAS 14, the primary segment of the Facility is business operation and the secondary segment is geographical.

The activity of the Facility comprises primary banking and treasury operations.

Banking operations represent investments in projects, which are made with the purpose of supporting investments of private and commercially run public sector entities. The main investment products are loans, equity investments and guarantees.

Treasury activities include investing surplus liquidity and managing the Facility foreign exchange risk.

The Facility's activities are divided into five regions for internal management purposes.

Primary reporting format — business segment:

Secondary reporting format — geographical segment:

3.5.5.   NET FEE AND COMMISSION INCOME

The main components of net fee and commission income are as follows:

3.5.6.   NET RESULT ON FINANCIAL OPERATIONS

The main components of net fee profit on dealing activities and foreign exchange are as follows:

3.5.7.   GENERAL ADMINISTRATIVE EXPENSES

General administrative expenses represent the actual costs incurred by the European Investment Bank (the Bank) for managing the Facility less income generated from standard appraisal fees directly charged by the Bank to clients of the Facility.

Under the Council Decision of 8 April 2003, the Member States agreed to cover in full the expenses incurred by the Bank for the management of the Facility for the first five years of the 9th European Development Fund.

Net general administrative expenses provisioned as at 31 December 2004 in the Bank financial statements amounted to EUR 18 million. Based on the actual costs incurred by the European Investment Bank, this amount was subsequently adjusted by EUR 2,17 million in 2005. The 2004 income statement of the Facility has been restated to take into account this adjustment.

3.5.8.   CASH AND CASH EQUIVALENTS

For the purposes of the cash flow statement, cash and cash equivalents comprise the following balances with less than three months maturity from the date of acquisition. At 31 December 2005 and 2004, the Facility has only current accounts with the European Investment Bank.

The cash and cash equivalents can be broken down between the funds received from the Member States and not yet disbursed and the funds from the Facility's operational and financial activities.

3.5.9.   LOANS AND EQUITY INVESTMENTS

At 31 December 2005, no loan was considered as impaired.

One equity investment has been completely impaired during the year, for an amount of EUR 1,9 million.

Investments in quoted companies represent EUR 10,1 million of the total equity investments.

At 31 December 2004, loans and advances to credit institutions for an amount of EUR 7,8 million have been reclassified in equity investments due to their nature in order to comply with IFRS rules.

3.5.10.   AMOUNTS RECEIVABLE FROM CONTRIBUTORS

The main components of amounts receivable from contributors are as follows:

3.5.11.   OTHER ASSETS

Other assets are made up of interest receivable on loans.

3.5.12.   DERIVATIVE FINANCIAL INSTRUMENTS

3.5.13.   Amounts owed to third parties

The main components of amounts owed to third parties are as follows:

3.5.14.   FACILITY MEMBER STATES CONTRIBUTION

With regard to the Member States’ contribution to the Facility, an amount of EUR 455 million has been called, of which EUR 395 million has been paid-in. Of this contribution, an amount of EUR 370 million is allocated to the funding of the Facility as such, whereas EUR 85 million are earmarked to finance interest subsidies.

In 2005, a prior contribution amounting to EUR 20 million was cancelled retroactively at the request of the Member States participating in the 9th European Development Fund.

The statement of Member States’ contribution to the Facility as at 31 December 2005 is as follows:

3.5.15.   COMMITMENTS

The Facility's commitments are as follow:

3.5.16.   SUBSEQUENT EVENTS

There have been no material post balance sheet events which would require disclosure or adjustment to the 31 December 2005 financial statements.

On a proposal from the Management Committee, the Board of Directors reviewed these financial statements on 7 March 2006 and decided to submit them to the Board of Governors for approval at their meeting to be held on 6 June 2006.

4.   APPENDIX — SITUATION BY COUNTRY AND BY INSTRUMENT

(All figures presented in the Report on Financial Implementation are on a cash basis)

TABLE 3.1.1

6th EDF

Cumulative 2005

GLOBAL SITUATION BY STATE

TABLE 3.1.2

6th EDF

Cumulative 2005

GLOBAL SITUATION BY STATE

TABLE 3.1.3

6th EDF

Cumulative decisions 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.1.4

6th EDF

Cumulative decisions 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.1.5

6th EDF

Assigned cumulative funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.1.6

6th EDF

Assigned annual funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.1.7

6th EDF

Cumulative payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.1.8

6th EDF

Annual payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.2.1

7th EDF

Cumulative 2005

GLOBAL SITUATION BY STATE

Table 3.2.2

7th EDF

Annual 2005

GLOBAL SITUATION BY STATE

TABLE 3.2.3

7th EDF

Decisions cumulative 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.2.4

7th EDF

Annual decisions 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.2.5

7th EDF

Assigned cumulative funds 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.2.6

7th EDF

Assigned funds annual 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.2.7

7th EDF

Payments cumulative 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.2.8

7th EDF

Payments annual 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.3.1

8th EDF

Cumulative 2005

GLOBAL SITUATION BY STATE

TABLE 3.3.2

8th EDF

Annual 2005

GLOBAL SITUATION BY STATE

TABLE 3.3.3

8th EDF

Cumulative decisions 2005

SITUATION BY INSTRUMENT AND STATE

TABLE 3.3.4

8th EDF

Annual decisions 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.3.5

8th EDF

Assigned cumulative funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.3.6

8th EDF

Assigned annual funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.3.7

8th EDF

Cumulative payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.3.8

8th EDF

Annual payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.1

9th EDF

Cumulative 2005

GLOBAL SITUATION BY STATE

Table 3.4.2

9th EDF

Annual 2005

GLOBAL SITUATION BY STATE

Table 3.4.3

9th EDF

Cumulative decisions 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.4

9th EDF

Annual decisions 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.5

9th EDF

Assigned cumulative funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.6

9th EDF

Assigned annual funds 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.7

9th EDF

Cumulative payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.4.8

9th EDF

Annual payments 2005

SITUATION BY INSTRUMENT AND STATE

Table 3.5.1

All EDF

Cumulative 2005

SITUATION BY STATE

Table 3.5.2

All EDF

Annual 2005

SITUATION BY STATE

Table 3.5.3

Breakdown, by country and type, of aid granted in accordance with the Cotonou provisions (up to 31 December 2005)

Table 3.5.4

Breakdown, by country, of aid granted in the form of budget support in accordance with the Cotonou provisions (up to 31 December 2005)

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(1)OJ L 83, 1.4.2003, p. 1.

(2)OJ L 156, 18.6.2005, p. 19.

(3)OJ L 198, 6.8.2003, p. 8.

(4)OJ L 94, 31.3.2004, p. 57.

(5)OJ L 48, 18.2.2006, p. 19.

(6)OJ L 48, 18.2.2006, p. 21.

(7)OJ L 195, 1.8.2000, p. 46.

(8)OJ L 59, 4.3.2003, p. 24.

(9)  The unallocated resources from the previous EDFs include the balance of the Sysmin funds, which by Decision 3/2000 of the ACP-EC Ambassadors' Committee was set at 410,926 million. Council Decision E410/2001 includes these resources in programming for the national indicative allocations (part B) under the financial protocol to the ACP-EC Partnership Agreement.

(10)  In connection with the release of the conditional billion, a balance of EUR 123 million was reallocated to the regional envelope in February 2006 on the basis of corrigendum no 1 (dated 1 February 2006) to ACP-EC Council Decisions Nos 6 and 7 of 22 November 2005. This amount of EUR 123 million will also be corrected in 2006 in order to achieve a figure of EUR 122 million corresponding to the amount still available under the investment facility following the initial allocation from the conditional billion. The final total of the regional envelope managed by the Commission (OLAS) will consequently be EUR 2 153 000 000.

(11)  Transfer to 9th EDF following the entry in force of Cotonou (decision of the commission of 16 April 2003).

(12)  Transfer to 9th EDF following the entry in force of Cotonou (decision of the commission of 16 April 2003).

(13)  Transfer to 9th EDF following the entry in force of Cotonou (decision of the commission of 16 April 2003).

(14)  Interest earned on Stabex security accounts.

(15)  Transfer to 9th EDF following entry in force of Cotonou (Commission decision of 16 April 2003).

(16)  Signature of csp for the country.

(17)  Increase of allocations following the MTR.

(18)  Decrease of allocations following the MTR.

(19)  Release of conditional billion.

(20)  Transfer from long-term dev. reserve to intra ACP reserve.

(21)  Transfer from long-term dev. reserve to joint assistance.

(22)  Regularisation of transfers made in 2004 following MTR, as the transfers were made to and from the national allocation reserve instead of the LT dev reserve.

(23)  Interest on EDF Funds, 2005.

(24)  Interest on Congo Funds, 2005.

(25)  Transfers from envelope B.

(26)  % of appropriations.

(27)  corresponding to amounts registered in the Authorising Officer's Accounts

(28)  Revenues represent the net profit on the Facility's operational activity (i.e. interest and commission income, less impairment, plus or minus the realised gain or loss on equity investments respectively).

(29)  Under geographical segment ‘Other’ are considered the amount payable to or receivable from the Member States or the European Investment Bank and the Facility cash and cash equivalent.

(30)  On 22 December 2005 the Council fixed the amount of the financial contributions to be paid by each Member State by 20 January 2006.

(31)  Unallocated resources from previous EDFs include the remainder of the Sysmin Fund which was established at EUR 410 926 million by ACP-EC Council of Ministers Decision 3/2000. Council Decision E410/2001 includes these resources in the planning of the national indicative allocations (Part B) under the Financial Protocol to the ACP EC Partnership Agreement.

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